New Capital Gains Tax Has More Impact Than Expected

A new state capital gains tax will potentially send hundreds of millions of dollars more than expected to schools across the state.

New Capital Gains Tax ( Photo: HRS Family Law Solicitors )

A 7% tax on the sale of stocks and other assets has been approved by the Supreme Court despite facing legal challenges

Lawmakers passed the budget based on previous projections that Washington could collect $248 million in capital gains tax payments in the 2023 fiscal year ending July 1. But that number could change later this year if about 2,500 taxpayers who applied for the extension file their tax returns according to the U.S. Treasury Department. But if that amount stays roughly the same, there could be significantly more money going into kindergarten through high school, early childhood education, and building and renovating schools.

New spending from higher-than-anticipated revenues needs to be approved during Congress in 2024

As for school construction, State Senator Mark Mullet, chairman of the Senate Construction Budget Committee, has said he should prioritize funding for schools in areas with low real estate values ​​because it could make tax collection difficult. This year, lawmakers introduced policies such as the introduction of a wealth tax and higher taxes on multi-million dollar property sales but none of the bills passed.

READ ALSO: Up To $1,000 New Mexico Tax Rebate 2022: Deadline To Claim Is Approaching!